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1. If you don't have to use Jupyter, you can create a Sage worksheet (file ending in .sagews), then put %octave at the top of a cell, and your example works. For example: https://cloud.sagemath.com/projects/4a5f0542-5873-4eed-a85c-a18c706e8bcd/files/support/2016-02-09-185147-octave-symbolic.sagews

2. I've reported your bug to the Octave jupyter kernel issue tracker: https://github.com/Calysto/octave_kernel/issues/37

William